Barron's Take

Can Aussie Bank Stocks Fight Off Short Sellers?

Short positions in the big four lenders are up 50%: Westpac looks the strongest but be wary of NAB.

As short sellers circle Australia’s big four banks, which of the lenders is poised to put up the best fight?

Combined short positions on the big four Australian banks have soared 50% this year to a record high AUD9 billion, or around 2.4% of the group’s market cap. Reasons abound for short sellers to strike: juicy dividends have been under threat as the lenders grapple with rising bad loans and weaker revenues amid...